15, March 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

Recently, the dynamics of the pound does not present any interest though the question how much more bad news can this currency take is always in the area.

The pound was able to recover all the damages on Tuesday against the euro and the dollar until the beginning of the correction. Now the pound has the most stretched positions from the end of 2008, along side with the relative strength index RSI.

This is a big risk for a true recovery against the pound cover short positions, but still, it looks like more a timeout than the real turn.

You should also consider the fact that there is an inaccuracy around the policy, especially monetary, especially given the rumors of regime change, which at the beginning of next week may be announced.

Short-term correction can not be excluded, as the British currency is heavily oversold.

Today we do not expect interesting dara from UK let's see if we can get some from the USA.